Why optimizing first?

Publisher Optimization: The Complete CycleThis paper primarily addresses the ways that creative optimization lowers the cost an advertiser pays to deliver a certain action, but it applies equally to publishers, who also benefit from creative optimization as they are able to:Deliver better value to advertisers – Media buyers with inadequate or missing optimization tools experience better results with publishers that optimize creatives for them. This leads to more satisfied and loyal buyers and ultimately the ability to command higher rates.Better fulfill CPA and CPC buys – The advertiser realizes the same value from a click or action no matter how many impressions the publisher had to use to drive it. Fewer wasted impressions mean more sold impressions and more revenue.Optimization is defined as any activity intended to enhance
efficiency. As online advertisers and publishers exchange media they
inherently seek higher revenues and lower costs, respectively.
Re-examining the basic objectives of each party helps to make clear the
most effective techniques for online advertising optimization.

Publishers code their site pages with ad spots, each one of which generates an impression (a viewed ad) every time a visitor looks at the page. The publisher sells this ad inventory (impressions, or the clicks and actions that they can produce) to advertisers. Success consists of earning the highest possible revenue with the available inventory – typically measured in the effective cost per thousand (eCPM) that advertisers are paying for the ad inventory.

eCPM = Total Revenue Earned from Media Buy Thousands of Imps Used for Media Buy

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Optimization Best PracticesThe next generation of creative optimization tools will have all of the characteristics needed to deliver superior value:Automatic: Users tell the system what to do and it acts.Real-time: Analysis and adjustment occur as quickly as possible.Publisher Optimization: The Complete CycleThis paper primarily addresses the ways that creative optimization lowers the cost an advertiser pays to deliver a certain action, but it applies equally to publishers, who also benefit from creative optimization as they are able to:Deliver better value to advertisers – Media buyers with inadequate or missing optimization tools experience better results with publishers that optimize creatives for them. This leads to more satisfied and loyal buyers and ultimately the ability to command higher rates.Better fulfill CPA and CPC buys – The advertiser realizes the same value from a click or action no matter how many impressions the publisher had to use to drive it. Fewer wasted impressions mean more sold impressions and more revenue.